Annuity Having Interest Rate Coupled to a Referenced Interest Rate

1. A computer-implemented method of administering a financial account comprising: defining at a processor a base interest rate, said base interest rate being applied to the value of the account for an initial predefined period; defining at the processor a base referenced rate of interest as of an initial date; for each subsequent predefined period following the initial predefined period: (A) determining at the processor a current referenced rate of interest as of a subsequent date; (B) defining at the processor a total interest rate that will be applied to the value of the account during the subsequent predefined period, wherein: (i) if the current referenced rate of interest is less than or equal to the base referenced rate of interest, the total interest rate will be equal to the base interest rate; and (ii) if the current referenced rate of interest is greater than the base referenced rate of interest, the total interest rate will be the sum of the base interest rate and an interest enhancement; and applying at the processor the total interest rate for each subsequent predefined period to the value of the account during each subsequent predefined period.

2. The computer-implemented method of claim 1 wherein the interest enhancement is determined based on the difference between the current referenced rate of interest and the base referenced rate of interest.

3. The computer-implemented method of claim 2 wherein the interest enhancement is equal to a participation factor multiplied by the difference between the current referenced rate of interest and the base referenced rate of interest.

4. The computer-implemented method of claim 3 wherein the participation factor is 1.

5. The computer-implemented method of claim 1 wherein the base referenced rate of interest is the five-year Constant Maturity United States Treasury yield as of the initial date and wherein the current referenced rate of interest is the five-year Constant Maturity United States Treasury yield as of the subsequent date.

6. The computer-implemented method of claim 1 further comprising providing a guarantee that the interest rate that will be applied to the account will not be less than the base interest rate for a multi-year guarantee period and wherein the predefined period is 1 year.

7. The computer-implemented method of claim 6 , wherein the multi-year guarantee period is 5 years.

8. The computer-implemented method of claim 1 wherein the date the current referenced rate of interest is determined is a date on which the referenced rate of interest is highest among referenced rates of interest determined for the predefined periods since the initial predefined period.

9. The computer-implemented method of claim 1 wherein the base referenced rate of interest is a specified United States Treasury rate as of the initial date and wherein the current referenced rate of interest is the specified United States Treasury rate on the subsequent date and wherein the value of the account as of the initial date is no less than approximately $3,000.

10. The computer-implemented method of claim 9 , wherein the specified United States Treasury rate is the five-year “on the run” Treasury rate.

11. The computer-implemented method of claim 1 , wherein the base referenced rate of interest is based on an interest rate that is used to settle a contract that is traded on a financial futures exchange as of the initial date and wherein the current referenced rate of interest is based on an interest rate that is used to settle a contract that is traded on a financial futures exchange on the subsequent date.

12. A computer-implemented method for managing a financial agreement comprising: receiving a purchase payment; and generating at a processor a financial agreement, comprising: a base interest rate; a specified time period during which a first interest rate is provided that is equal to the base interest rate, the specified time period having a beginning and an end; and an interest enhancement applied to the first interest rate at the end of the specified time period based on changes in a referenced rate of interest as defined at the beginning of the specified time period, wherein: (a) if the value of the referenced rate of interest on the date said interest enhancement is calculated is not greater than the value of the referenced rate of interest at the beginning of the specified time period, said interest enhancement is zero; and (b) if the value of the referenced rate of interest on the date the interest enhancement is calculated is greater than the value of the referenced rate of interest at the beginning of the specified time period, a positive interest enhancement is applied; and wherein a second interest rate is provided after the interest enhancement is calculated and wherein the second interest rate is the sum of the base interest rate and the interest enhancement.

13. The computer-implemented method of claim 12 further comprising the step of providing income payments.

14. The computer-implemented method of claim 12 further comprising the step of investing the purchase payment.

15. The computer-implemented method of claim 12 wherein the purchase payment is at least approximately $3,000.

16. The computer-implemented method of claim 12 further comprising the step of investing the purchase payment and wherein the referenced rate of interest is the five-year Constant Maturity United States Treasury yield.

17. The computer-implemented method of claim 12 , further comprising the step of investing the purchase payment and wherein the purchase payment is at least approximately $5,000 and wherein the referenced rate of interest is the five-year Constant Maturity United States Treasury yield.

18. The computer-implemented method of claim 12 wherein if the value of the referenced rate of interest on the date the interest enhancement is calculated is greater than the value of the referenced rate of interest at the beginning of the specified time period, the interest enhancement is calculated by taking the difference between: (1) the value of the referenced rate of interest on the date the interest enhancement is calculated and (2) the value of the referenced rate of interest at the beginning of the specified time period, and multiplying the difference by a participation factor.

19. The computer-implemented method of claim 18 wherein the participation factor is 1.

20. A computer-implemented method of administering a financial account comprising: electronically storing in an electronic storage the value of the financial account; defining at a processor and electronically storing in the electronic storage a base interest rate; electronically applying at the processor the base interest rate to the value of the financial account for an initial predefined period to obtain a first result; electronically storing in the electronic storage the first result; obtaining and electronically storing in the electronic storage a base referenced rate of interest as of a specified date; obtaining a current referenced rate of interest as of the date the current referenced rate of interest is determined; electronically storing in the electronic storage the current referenced rate of interest; determining at the processor a total interest rate by comparing the base referenced rate of interest to the current referenced rate of interest, and: (i) if the current referenced rate of interest is less than or equal to the base referenced rate of interest, determining the total interest rate to be equal to the base interest rate, and (ii) if the current referenced rate of interest is greater than the base referenced rate of interest, determining the difference between the current referenced rate of interest and the base referenced rate of interest and determining the total interest rate to be the sum of the base interest rate and an interest enhancement that is determined based on said difference between the current referenced rate of interest and the base referenced rate of interest; and electronically storing in the electronic storage the total interest rate.

21. The computer-implemented method of claim 20 further comprising electronically applying at the processor the total interest rate to the first result for a period subsequent to the initial predefined period to obtain a second result.

22. The computer-implemented method of claim 21 further comprising electronically storing in the electronic storage the second result.

23. The computer-implemented method of claim 20 wherein the base referenced rate of interest is a specified United States Treasury rate as of the specified date and wherein the current referenced rate of interest is the same United States Treasury rate as of the date the current referenced rate of interest is determined.

24. A computer-readable medium comprising computer-executable instructions that when executed cause a computer device to perform the method of administering a financial account comprising: defining at a processor a base interest rate, said base interest rate being applied to the value of the account for an initial predefined period; defining at the processor a base referenced rate of interest as of an initial date; for each subsequent predefined period following the initial predefined period: (A) determining at the processor a current referenced rate of interest as of a second date; (B) defining at the processor a total interest rate that will be applied to the value of the account during the subsequent predefined period, wherein: (i) if the current referenced rate of interest is less than or equal to the base referenced rate of interest, the total interest rate will be equal to the base interest rate; and (ii) if the current referenced rate of interest is greater than the base referenced rate of interest, the total interest rate will be determined based on the difference between the current referenced rate of interest and the base referenced rate of interest; and applying at the processor the total interest rate for each subsequent predefined period to the value of the account during the predefined period.